THE FAR EAST-Continued

Subject

Memorandum by the Third Assistant Secretary of State (Long)
Conversation with the Chinese Minister concerning China's
program for the Peace Conference: (1) territorial integrity,
(2) political sovereignty, and, (3) physical and economic
independence.

The Third Assistant Secretary of State (Long) to the Assistant
Secretary of the Commission to Negotiate Peace (Harrison)
Memorandum on the disposition of the ex-German islands
of the Pacific Ocean now in the possession of Great Britain and
Japan (text printed).

The Acting Secretary of State to the Ambassador in France
(Sharp) (tel.)

For Secretary Lansing: Information that the Japanese are trying to conclude an agreement with the Chinese in regard to the Shantung Railway.

The Minister in China (Reinsch) to the Acting Secretary of
State (tel.)

Request for instructions in regard to the desire of the Chinese
Postal Administration to acquire the German post office in the
Legation Quarter.

The Acting Secretary of State to the Minister in China (Reinsch)
(tel.)

Opinion that Chinese should not take possession of the
German post office without consent of the protocol powers.
The Acting Secretary of State to the Commission to Negotiate
Peace (tel.)

For the Secretary of State: Suggestion that the visit of
President Wilson and Secretary Lansing to London might offer
an opportunity for reaching a broad understanding with the
British on the question of the Far East.

The Acting Secretary of State to the Commission to Negotiate
Peace (tel.)

Statement that U. S. Minister in China has been instructed
that such matters as the internment of Germans and Austrians
in China should await the results of the Peace Conference.
The Minister in China (Reinsch) to the Acting Secretary of State
(tel.)

Arrangements for the abolition of German-Austro-Hungarian privileges in China which the Allied representatives have recommended to their Governments should be adopted at the Peace Conference.

The Acting Secretary of State to the Commission to Negotiate
Peace (tel.)

Information that it appears that the Japanese are promising to support Chinese desires at the Peace Conference in return for a favorable settlement of the Shantung question.

The Acting Secretary of State to the Minister in China (Reinsch)
(tel.)

Instructions not to participate in recommendations set forth in Minister's telegram of December 24, 1918.

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Date and number

1919 Jan. 6

Jan. 10

Jan. 11 (257)

The Minister in China (Reinsch) to the Acting Secretary of
State (tel.)

To be transmitted to President Wilson: Report of Japanese
manipulations in China which make it imperative that the
Peace Conference work out a permanent settlement of the
China question.

Undated Captain Stanley K. Hornbeck to the Commission to Negotiate

Jan. 13 (214)

Jan. 15 (293)

1918 Nov. 13 (5830)

Nov. 22 (2976)

Dec. 7 (3330)

THE FAR EAST-Continued

Subject

Peace

Opinion that the report of the Minister in China, telegraphed to the Department on January 6, is worthy of careful consideration by the Peace Commissioners.

President Wilson to the Secretary of State

British memorandum (text printed) indicating desire of Allies to repatriate enemy aliens in China, and pointing out the unhappy results of Department's decision that question' must await the consideration of the Peace Conference; instructions to take appropriate action to cooperate with the Allies in this matter.

The Commission to Negotiate Peace to the Acting Secretary of
State (tel.)

From Lansing: Suggestion that Legation at Peking be in-
structed to say to Foreign Office that U. S. Commissioners will
be unable to help China at the Peace Conference if Japan
presents a fait accompli in Shantung.

The Acting Secretary of State to the Commission to Negotiate
Peace (tel.)
Statement that Legation at Peking is being instructed as
suggested.

The Commission to Negotiate Peace to the Acting Secretary of
State (tel.)

From Lansing: Instructions as to action to be taken in
regard to enemy aliens in China.

FINANCIAL QUESTIONS

The Ambassador in France (Sharp) to the Secretary of State (tel.)
For McAdoo from Crosby: Opinion that the United States
should retain freedom of action in the disposal of its resources
after the war; belief that if private assets in Allied countries
are used to a maximum they will suffice as a basis of credit for
private needs.

The Acting Secretary of State to the Chargé in Great Britain
(Laughlin) (tel.)

For Crosby from McAdoo: Views in regard to U. S. financial
policies; belief that negotiations and decisions should be
concentrated in Washington rather than in Inter-Allied bodies.
The Acting Secretary of State to the Chargé in Great Britain
(Laughlin) (tel.)

For Crosby from McAdoo: Statement that questions concerning U. S. loans to Allies should not be decided at the Peace Conference, since Congress has expressly_delegated authority in such matters to the Secretary of the Treasury.

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537

Date and number

1918 Dec. 11 (166)

Dec. 13 (6272)

Dec. 13

Dec. 18

Dec. 19 (6674)

Dec. 19 (65)

Dec. 26 (82)

Dec. 31 (6808)

1919 Jan. 2 (66)

Jan. 2

FINANCIAL QUESTIONS-Continued

Subject

The Acting Secretary of State to the Commission to Negotiate
Peace (tel.)

For Colonel House from McAdoo: Instructions given to Treasury representatives in Europe in view of indications that Allies may attempt to bring questions concerning U. S. loans into the Peace Conference.

The Ambassador in France (Sharp) to the Acting Secretary of
State (tel.)

For McAdoo from Crosby: Conversation with French
Minister of Finance from which it seems that he has in mind
some plan for cancellation or of connecting maturity of French
obligations with payment of indemnities.

Financial Protocol Signed at Trèves

Provision for conservation of German securities pledged to the French Government to serve as a guarantee for the collection of the common debt.

The French Chargé (Chambrun) to the Acting Secretary of State
Information concerning the financial protocol signed at
Trèves, December 13.

The Acting Secretary of State to the Ambassador in France
(Sharp) (tel.)

For Crosby from Rathbone: Statement that Treasury is not disposed to press France to discuss at this time questions relating to conversion of demand loans into long-time obligations.

The Acting Secretary of State to the Commission to Negotiate
Peace (tel.)

For the President from Glass: Views in regard to certain aspects of the foreign loan situation.

The Commission to Negotiate Peace to the Acting Secretary of
State (tel.)

For Glass from House: Recommendation that Mr. Norman Davis be appointed as a Commissioner in connection with the armistice discussions at Spa.

The Acting Secretary of State to the Ambassador in France
(Sharp) (tel.)

For Davis from Glass: Offer of appointment as suggested
by House; instructions, so far as time is not occupied by
special mission, to furnish President Wilson with financial
advice on matters not touching foreign loans.

The Acting Secretary of State to the Commission to Negotiate
Peace (tel.)

For the President from Glass: Request for advice in regard
to Crosby's resignation as Special Finance Commissioner;
reluctance to send an Assistant Secretary to Paris to head an
organization to deal with financial questions which may arise
in connection with the Peace Conference.

The French Chargé (Chambrun) to the Acting Secretary of State
Inquiry as to whether the U. S. Government intends to
designate a Commissioner to serve with the French representa-
tive in handling matters relating to Germany's financial situa-
tion.

(Footnote: Acting Secretary's reply on January 27 that Mr. Norman Davis had been appointed.)

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FINANCIAL QUESTIONS-Continued

Subject

The Special Commissioner of Finance in Europe (Crosby) to the
Secretary of State

Request for an interview in view of indications that Jugoslavs intend to ask for greatly increased loans.

The Chargé in France (Bliss) to the Acting Secretary of State (tel.)
For the Secretary of the Treasury from Crosby: Points to be
considered in regard to desire of Jugoslavs for increased loans.
The Commission to Negotiate Peace to the Acting Secretary of
State (tel.)

For the Secretary of the Treasury from the Commissioners Plenipotentiary: Inquiry as to whether Secretary would approve of appointment of Mr. Albert Strauss as financial adviser to the American Commission.

The Commission to Negotiate Peace to the Acting Secretary of
State (tel.)

For Glass from Davis: Acceptance of appointment as Com-
missioner in connection with armistice discussions at Spa.
Information that the President has also appointed him to
Inter-Allied board to coordinate relief work.

The Acting Secretary of State to the Commission to Negotiate
Peace (tel.)

For the President from Glass: Fear that there may be con-
fusion in regard to Treasury representatives in Europe; sugges-
tion that a Treasury Commission in Europe be created with
Strauss as chairman, and including Davis, Lamont, and Crosby.
The Commission to Negotiate Peace to the Acting Secretary of
State (tel.)

For Glass: Request for approval of Davis to act as Treasury representative on a council to coordinate the work of different departments in determining U. S. policies to be pursued in the peace negotiations.

The Commission to Negotiate Peace to the Acting Secretary of
State (tel.)

Two letters from the President to Davis, January 6 (texts
printed), to serve as Davis' credentials to act as U. S. Finance
Commissioner in the armistice discussions until his commission
is issued by the Secretary of State.

Mr. Norman H. Davis to Colonel E. M. House

Arrangements concerning representation at Spa and Mayence conferences and assistance to Relief Council and Peace Commission.

The Acting Secretary of State to the Commission to Negotiate
Peace (tel.)

For House from Glass: Statement that if President Wilson approves suggestion of a Treasury Commission in Europe with Mr. Strauss as chairman, Mr. Strauss should also be Treasury representative on the council to coordinate activities of the different Departments.

Mr. Norman H. Davis to Colonel E. M. House

Conditions which the French Government proposes to insert when renewing the armistice with Germany.

The Acting Secretary of State to the Commission to Negotiate
Peace (tel.)

Communication from the Alien Property Custodian in regard to property of subjects of the former Austrian Empire (text printed).

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Date and number

1919 Jan. 10 (233)

Jan. 11 (9)

Jan. 11 (3448)

Jan. 11 (252)

Jan. 11

Jan. 13

Jan. 13 (6721)

Jan. 14

Jan. 14 (278)

Jan. 14 (102)

FINANCIAL QUESTIONS—Continued

Subject

The Commission to Negotiate Peace to the Acting Secretary of
State (tel.)

For Rathbone from Davis: Arrangements concerning repre-
sentation at Spa and Mayence conferences and assistance to
Relief Council and Peace Commission.

The Minister in Norway (Schmedeman) to the Commission to
Negotiate Peace (tel.)

Telegram sent to the Department (text printed) asking for instructions in regard to a warning issued by the French Legation in respect to the financial protocol signed by the Allies and Germany at Trèves, December 13, 1918.

The Charge in Denmark (Osborne) to the Acting Secretary of
State (tel.)

Request for instructions in regard to warnings given by French Minister to the Danish Foreign Office in respect to the financial protocol signed at Trèves, December 13, 1918.

The Commission to Negotiate Peace to the Acting Secretary of
State (tel.)

For the Secretary of the Treasury from the President: Sug-
gestion that Crosby's resignation as Special Finance Commis-
sioner be accepted; belief that it is not necessary to create a
Treasury Commission in Europe at present; approval of send-
ing Strauss to advise with American Mission; fear, however,
that he will not be able to remain long.

The Special Commissioner of Finance in Europe (Crosby) to
the Secretary of State

Extract from a telegram sent to the Secretary of the Treas-
ury, January 9, in regard to U. S. funds to support a proposed
increase in the Belgian Army.

General Tasker H. Bliss to the Secretary of State

Opinion that the United States should not finance any increase in any military establishment in Europe and that present aid should be gradually reduced.

The Chargé in France (Bliss) to the Acting Secretary of State
(tel.)

For the Secretary of the Treasury from Crosby: Report from
Harris on economic situation in Italy (text printed), recom-
mending that U. S. food credits should taper off and end com-
pletely about September.

The Secretary of State to President Wilson

Decision to follow General Bliss' advice in answering Mr.
Crosby concerning the proposed increase in the Belgian Army.
The Commission to Negotiate Peace to the Acting Secretary of State
(tel.)

For Secretary Glass from Colonel House: Opinion of the Commissioners that it would not be wise at present to appoint a Treasury Commission in Europe.

The Chargé in Denmark (Osborne) to the Commission to Nego-
tiate Peace (tel.)

Telegram sent to Department, January 14 (text printed),
reporting on results of French Minister's warning to Danish
Foreign Office.

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